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Oao - Oando Plc - Audited Results For 12 Months Ending 31 December 2007

Release Date: 14/04/2008 11:00:03      Code(s): OAO
OAO - Oando Plc - Audited results for 12 months ending 31 December 2007         
Oando Plc                                                                       
(Incorporated in Nigeria and registered as an external company in South Africa) 
Registration number: RC 6474                                                    
(External company registration number: 2005/038824/10)                          
Share code on the JSE Limited:  OAO                                             
Share code on the Nigerian Stock Exchange:  UNTP                                
ISIN: NG00000UNTP0                                                              
("Oando" or "the Company" or "the Group")                                       
Audited results for 12 months ending 31 December 2007                           
Highlights:                                                                     
-  Turnover of $1,501 million                                                   
-  Gross profit of $173 million                                                 
-  Gross profit margin of 11.5%                                                 
-  Operating profit of $64 million                                              
-  Profit After Tax of $49.8 million                                            
-  Attributable Profit After Tax of $43.9 million                               
-  Earnings per share: 6.94c                                                    
-  Improved performance of our non-marketing business lines, especially our     
supply and trading business division                                          
-  Improved trade debt and bank facility management                             
-  Improved corporate governance and transparency through corporate             
  restructuring and alignment of shareholder interest                           
-  Integration of our business processes following the successful conclusion    
  and roll-out of the various  modules of our Enterprise Resource Planning      
  system                                                                        
-  Fortification of the Company`s human resource through the widely promoted    
acculturation programme "T.R.I.P.P."                                          
-  Continuous market and product development to improve the bottom-line and     
  diversify income base                                                         
-  An evolving visible presence in the upstream oil service segment with the    
recent acquisition of two oil rigs                                            
Review of results                                                               
Oando Plc which has a primary listing on the Nigerian Stock Exchange and a      
secondary listing on the JSE Limited (JSE) reports 12 months Group Profit After 
Tax (PAT) for the financial year ended 31 December 2007 of $49.8m, an increase  
of 126% over the prior year when the Company closed with a profit figure of     
$22.02m.                                                                        
Income statement analysis                                                       
Consolidated turnover reduced by 9% to $1,501m, from $1,648m in 2006. A         
combination of economic and socio-political factors mitigated the performance of
our marketing business during the year resulting in the marginal reduction in   
Turnover.                                                                       
The instability experienced during the second quarter of the year had an        
unfavourable effect on turnover; a hike in the pump price of major petroleum    
products led to industrial and general strike actions which in turn crippled    
economic activities thereby impacting on turnover. This was further aggravated  
by the several labour-work hours lost during public holidays declared to enable 
voting and mark the transition to a new democratic government.                  
Our Gas business was affected by the maintenance of the gas pipelines which     
constrained gas supply during the year. The anticipated completion of the       
ongoing pipeline expansion in Lagos could not be met due to delays in arrival of
acquired pipe as well as inexplicable logistic logjam thus denying the division 
the opportunity to meet up with its projected revenue income from existing and  
potential customers.                                                            
Our  Supply and Trading division was able to utilise expertise garnered over the
years  to  bridge  gaps  that opened up in the supply chain  thereby  delivering
results well above the previous year`s level.                                   
Despite the reduction in turnover, the Group`s gross profit increased by 23%    
compared to the previous year. This was due to improved margin efficiency as    
gross profit margin was 11.5% compared to 9% in 2006. The improvement in profit 
margin shows that strategic effort through operational efficiency is fast       
yielding results. Oando`s strategic intent of further exploring business        
opportunities in the higher margin products and segments is expected to further 
boost margin efficiency in the future.                                          
Our operating results also show marked improvement of 36% from $47m to $64m in  
2007. This, in addition to improved margin efficiency, is largely attributable  
to the increase in our non-fuel revenue income coupled with our efficiency in   
the management of our debt portfolio.  The over 100% increase in other income   
reduces significantly the increase in selling, marketing and administrative     
expenses caused by further expansion of our business activities and increase in 
the cost of doing business in Nigeria.                                          
Also beneficial to our improved results was the reduction in finance costs by   
75%, from $12m in the previous year to $3m in 2007. This was achieved by our    
ability to negotiate better terms with our creditors and also by marked         
improvement in our working capital management. Improved debt restructuring and  
alternative finance sources also contribute to a reduced finance costs. In all, 
total PAT therefore increased by 126% from $22.02m in 2006 to $49.8m, while     
profit attributable to shareholders increased by 157% to $43.9m from $19.3m in  
2006. The corporate restructuring exercise carried out during the year was the  
primary driver, apart from those aforementioned, of the increase in profit      
attributable to shareholders of the Company.                                    
Balance sheet analysis                                                          
The Group`s total assets rose by 111% to $1,553m compared to $735m in 2006. The 
increase in total assets was due to a combination of increased fixed asset      
acquisition, specifically plants and equipment, intangible assets, inventories  
as well as trade and other receivables. Property, plant and equipment increased 
by 141% due to acquisition of two oil rigs during the year. Following the share 
swap carried out during the year, additional goodwill was recognised. The       
increase in inventories by 98% was driven by the increase in stock of finished  
goods. Receivables from trading partners also witnessed an increase of 98%      
during the period.                                                              
Total equity increased by 104% from $184m in 2006 to $376m in 2007. This was    
mainly due to an increase in share capital and share premium arising from the   
issue of shares to minority interest in exchange for their holdings. Fixed      
assets revaluation also increased by $46m to $64m, following the revaluation    
surplus recognised on land and building by the firms of Ubosi & Elle (chartered 
Valuers).                                                                       
Total liabilities increased by 113% from $551m in 2006 to $1,176m in 2007. The  
increase was partly as a result of borrowings in the form of bank loans to      
finance the Greater Lagos Phase II and III gas distribution project. Also       
significant was the increase due to increase in trade and other payables by     
166%, as well as the increase in unpaid dividends from $15m to $898m.           
The increase in total liabilities is indicative of our drive to diversify away  
from traditional downstream marketing to higher margin lines, thus the huge     
investments in other product service lines.                                     
Prospects                                                                       
Our 2007 results show that our long term goal of fortifying our non-marketing   
business is yielding results. We shall continue to make emphasis on higher value
business segments in order to generate higher margins from our business lines.  
We have therefore made huge capital commitments in our Exploration and          
Production business segment. The returns on this investment are expected to     
boost the Group`s profitability and take us closer towards our strategic goal of
being the leading integrated energy solutions provider in Africa. We shall      
continue to leverage on the opportunities present in our immediate and global   
environment: the limited number of players in the market, the goodwill the      
Company continues to enjoy among its corporate and retail customers, the        
inelastic demand for petroleum products as well as the increasing price of      
crude.                                                                          
Our Supply and Trading business is expected to build on the strong pace it has  
set in 2007, as there would be more emphasis on competitive pricing and widening
of the existing market. Strong strategic alliances will be formed with the      
Group`s upstream operations in order to boost the trading of crude production.  
Our Gas and Power division continues to face the challenge of public abuse of   
pipelines and pipeline infrastructure. However, the immense opportunities       
provided by the growing awareness of gas as a viable fuel as well as the demand 
for the  Government`s gas projects, such as the National Integrated Power       
Project provides immense opportunities for improving performance in the coming  
year. We expect the greater Lagos phase three initiative to kick start gas      
delivery to corporate Customers in the first month of the second quarter while  
its sister company, Eastern Horizon, is expected to be completed within 2008 and
contribute significantly to the bottom line of the Group company.               
Oando`s Energy business is expected to benefit from the divestment of low-margin
Product Service Lines (PSLs) to higher margin PSLs in the coming year. To this  
end, we shall continue to seek to gain competency in new PSLs as well as        
increase our client base in the existing ones. Our desire to gain visible       
presence in the upstream oil servicing will materialised with the commencement  
of operation of the two newly acquired oil rigs.                                
Our marketing business still continues to retain its significant position. As   
one of the biggest players in the Nigerian downstream sector, we will continue  
to capitalise on our existing strong market presence to increase turnover and   
generate value for shareholders.                                                
The successful roll-out of the Oracle Enterprise Resource Planning system is    
expected to boost business activities by integrating business processes and     
ensuring real time monitoring of operations.                                    
The Company is expected to benefit from the widely promoted acculturation       
programme which aims to support employee development, promote global standards  
of work ethics and ensure employee dedication. The Company will continue to     
emphasise on its core values of Team work, Respect, Integrity, Passion and      
Professionalism (T.R.I.P.P) and ingrain these values into employees across all  
strata of the Company.                                                          
Consolidated balance sheet                                                      
As at 31 December 2007                                                          
ASSETS                                          2007        2006                
                                               $`000       $`000                
Non-current assets                                                              
Property plant & equipment                      284,351     117,771             
Intangible assets                               259,583     113,094             
Long term investments                           90          256                 
Long term receivables                           97,755      38,281              
                                               641,779     269,402              
Current assets                                                                  
Inventories                                     212,636     119,835             
Trade & other receivables                       550,205     285,689             
Debenture                                                                       
Cash & cash equivalents                         147,974     60,121              
                                               910,815     465,645              
Total assets                                    1,552,594   735,047             
EQUITY                                                                          
Capital & reserves attributable to equity                                       
holders                                                                         
Share capital                                   2,896       2,162               
Share premium                                   232,909     120,742             
Revaluation reserve                             85,201      18,475              
Retained earnings                               53,736      28,025              
374,742     169,404              
Minority interest                               1,612       14,645              
Total equity                                    376,354     184,049             
                                                                                
LIABILITIES                                                                     
Non-current liabilities                                                         
Borrowings                                      180,954     9,996               
Deferred income tax liabilities                 42,599      18,557              
Retirement benefit obligation                   2,695       3,373               
Provisions                                      3,657       2,940               
Other non-current liabilities                                                   
                                               229,905     34,866               
Current liabilities                                                             
Trade & other payables                          511,010     192,146             
Current income tax liabilities                  11,248      7,342               
Borrowings                                      424,077     316,629             
946,335     516,132              
Total liabilities                               1,176,240   550,998             
                                                                                
Total equity & liabilities                      1,552,594   735,047             
Consolidated income statement                                                   
For the year ended 31 December 2007                                             
                                               2007        2006                 
                                               $`000       $`000                

Sales                                           1,501,020   1,647,840           
Cost of sales                                   (1,327,993) (1,516,427)         
Gross profit                                    173,280     131,413             
Selling & marketing costs                       (46,229)    (42,514)            
Administrative expenses                         (82,885)    (50,572)            
Other operating income                          19,963      9,565               
Operating profit                                64,129      47,892              
Shares of profit of associates                              -                   
Finance costs                                   (3,437)     (12,031)            
Profit before taxation                          60,692      35,861              
Income tax expense                              (10,888)    (13,839)            
Profit after expense                            49,804      22,022              
Attributable to:                                                                
Minority interest                               194         2,755               
Equity holders of the Company                   49610       19,267              
49,804      22,022               
Consolidated statement of changes in shareholder`s equity                       
Attributable to equity holders of the Company                                   
For the year ended 31 December 2007                                             
Share         Share       Revaluation          
                                 Capital       Premium     reserve              
                                 US$m          US$m        US$m                 
Balance as at 31st December 2006  2.16          120.74      11.37               
Revaluation on surplus on                                   66.31               
property, plant and equipment                                                   
Deferred tax effect of residual                             (20.55)             
value restatement                                                               
Issue of shares                   0.73          112.17                          
Fair value gain/loss on available                                               
for sale investments                                        (0.173)             
Currency translation adjustment                                                 
Profit for the year                                                             
Final dividend for 2006                                                         
Balance as at 31st December 2006  2.89          232.91      56.95               
                                 Share         Share       Revaluation          
Capital       Premium     reserve              
                                 US$m          US$m        US$m                 
Balance as at 1st January 2006    2.16          120.74      11.19               
Fair value gain on available for                                                
sale financial assets                                       0.18                
Currency translation differences                                                
Retained profit for the period                                                  
Currency translation differences                                                
Balance as at 31st December 2006  2.16          120.74      11.37               
                                 Cumulative   Retained  Minority Total          
                                 translation  earnings  interest equity         
                                 adjustment   US$m      US$m     US$m           
US$m                                           
Balance as at 31st December 2006  7.11         28.03     14.65    184.05        
Revaluation on surplus on                                                       
property, plant and equipment                                     66.31         
Deferred tax effect of residual                                                 
value restatement                                                 (20.55)       
Issue of shares                                          (13.23)  99.67         
Fair value gain/loss on available                                               
for sale investments                                              (0.173)       
Currency translation adjustment   21.14                           21.14         
Profit for the year                            43.94     0.19     44.13         
Final dividend for 2006                        (18.23)            (18.23)       
Balance as at 31st December 2006  28.25        53.74     1.61     376.35        
                                 Cumulative   Retained  Minority Total          
                                 translation  earnings  interest equity         
                                 adjustment   US$m      US$m     US$m           
US$m                                           
Balance as at 1st January 2006    (0.54)       20.03     10.79    164.38        
Fair value gain on available for                                                
sale financial assets                                             0.18          
Currency translation differences  7.65                            7.65          
Retained profit for the period                 19.27     2.76     22.03         
Currency translation differences               (11.28)   1.10     (10.181)      
Balance as at 31st December 2006  7.11         28.02     14.65    184.05        
Summarised consolidated cash flow statement                                     
For the year ended 31 December 2007                                             
                                                    2007        2006            
                                                    US$`000     US$`000         
Cash and cash equivalents at the beginning of the    (52,440)    (167,753)      
period                                                                          
Net cash inflow used in operating activities         22,630      (886)          
Cash used in investing activities                    (187,915)   (27,022)       
Net cash flows (used in)/generated from financing    290,231     137,130        
activities                                                                      
Exchange gains / (losses) in cash and cash           (6,495)     6,091          
equivalents                                                                     
Cash and bank overdrafts at end of period            66,011      52,440         
Notes to reviewed results                                                       
1. General information                                                          
Oando Plc (formerly Unipetrol Nigeria Plc) was registered by a special          
resolution as a result of the acquisition of the shareholding of Esso Africa    
Incorporated (principal shareholder of Esso Standard Nigeria Limited) by the    
Federal Government of Nigeria. The Company was partially privatised in 1991. It 
was however fully privatised in the year 2000 consequent upon the sale of       
Federal Government`s 40% shareholding in the Company. 30% was sold to core      
investors (Ocean and Oil Investments Limited) and the remaining 10% to the      
Nigerian public. In December 2002, the Company merged with Agip Nigeria Plc     
following its acquisition of 60% Agip Petroli`s stake of Agip Nigeria Plc in    
August of the same year. The Company formally changed its name from Unipetrol   
Nigeria Plc to Oando Plc in December 2003.                                      
Oando has its primary listing on the Nigerian Stock Exchange.                   
The Group has marketing and distribution outlets in Nigeria, Ghana and Togo and 
other smaller markets along the West African coast.                             
2. Summary of significant accounting policies                                   
The principal accounting policies applied in the preparation of these           
consolidated financial statements are set out below. These policies have been   
consistently applied to all the years presented, unless otherwise stated.       
2.1 Basis of preparation                                                        
The consolidated financial statements of Oando have been prepared in accordance 
with International Financial Reporting Standards (IFRS). The consolidated       
financial statements have been prepared under the historical cost convention, as
modified by the revaluation of land and buildings, and financial assets and     
financial liabilities at fair value through profit or loss.                     
The preparation of financial statements in accordance with IFRS requires the use
of certain critical accounting estimates. It also requires management to        
exercise judgement in the process of applying the Group`s accounting policies.  
Early adoption of standards                                                     
In 2004, the Group early adopted the IFRS below, which are relevant to its      
operations. These have been consistently applied in these financial statements  
for 2006.                                                                       
IAS 2 (revised 2003) Inventories                                                
IAS 8 (revised 2003) Accounting Policies, Changes in Accounting Estimates and   
Errors                                                                          
IAS 10 (revised 2003) Events after the Balance Sheet Date                       
IAS 16 (revised 2003) Property, Plant and Equipment                             
IAS 17 (revised 2003) Leases                                                    
IAS 21 (revised 2003) The Effects of Changes in Foreign Exchange Rates          
IAS 24 (revised 2003) Related Party Disclosures                                 
IAS 27 (revised 2003) Consolidated and Separate Financial Statements            
IAS 28 (revised 2003) Investments in Associates                                 
IAS 32 (revised 2003) Financial Instruments: Disclosure and Presentation        
IAS 33 (revised 2003) Earnings per share                                        
IAS 36 (revised 2004) Impairment of Assets                                      
IAS 38 (revised 2004) Intangible Assets                                         
IAS 39 (revised 2003) Financial instruments: Recognition and measurement        
IFRS 2 (issued 2004) Share-based payments                                       
IFRS 3 (issued 2004) Business Combinations                                      
IFRS 5 (issued 2004) Non-current Assets Held for Sale and Discontinued          
Operations                                                                      
The early adoption of IAS 10 has resulted in a change in the accounting policy  
for dividends. Proposed dividends, which were previously recognised in the year 
prior to the declaration, have been adjusted in accordance with IAS 10 and 37   
respectively.                                                                   
The application IAS 16 has affected the accounting for fair value reserve       
relating to revalued land and buildings upon disposal.                          
Under previous GAAP, the revaluation surplus included in equity in respect of an
item of property, plant and equipment were transferred to the income, when the  
asset is disposed of, to determine profit on disposal. Adjustments have been    
passed to transfer the related amounts directly to retained earnings in         
accordance with IAS 16. Also, early adoption of IAS 16 (revised 2004) has       
necessitated the disclosure of prior year comparatives for all movements in     
property plant and equipment.                                                   
IAS 21 (revised 2003) has affected the translation of foreign entities` income  
statements, on which closing rates were previously applied but now amended and  
translated at average rates. The functional currency of each of the consolidated
entities has also been re-evaluated based on the guidance to the revised        
standard. All the Group entities have the same functional currency as their     
presentation currency. These financial statements have been presented in a      
currency other than the Company`s functional currency, being US Dollars, to meet
the filing requirements of the JSE.                                             
IAS 24 (revised 2003) has affected the identification of related parties and    
some other related-party disclosures.                                           
IAS 27 (revised 2004) has affected the consolidation of subsidiaries. Certain   
subsidiaries, which were not included in the consolidation under previous GAAP  
have now been consolidated.                                                     
The early adoption of IAS 33 has resulted in a change in the computation of     
earnings per share. Earnings per share, which were previously computed on the   
basis of the number of shares in issue at the end of the reporting period, have 
been adjusted on the basis of the weighted average number of shares in          
accordance with IAS 33                                                          
The early adoption of IAS 39 has resulted in a change in accounting for         
financial assets and liabilities.                                               
Although the Group did not have any share-based payments as at the balance sheet
date, upon adoption of a scheme, which is currently being considered by the     
Group, all share based payments will be accounted for under IFRS 2.             
The early adoption of IFRS 5 has resulted in a change in the accounting for non-
current assets held for sale and discontinued operations as qualifying assets   
have been reclassified accordingly.                                             
The early adoption of IFRS 3, IAS 36 (revised 2004) and IAS 38 (revised 2004)   
resulted in a change in the accounting policy for goodwill. Until 31 December   
2002, goodwill was:                                                             
- Amortised on a straight line basis over a period ranging from 5 to 20 years;  
and                                                                             
- Assessed for an indication of impairment at each balance sheet date.          
In accordance with the provisions of IFRS 3:                                    
- The Group ceased amortisation of goodwill from 1 January 2003;                
- Accumulated amortisation as at 31 December 2002 has been eliminated with a    
corresponding decrease in the cost of goodwill;                                 
- Goodwill was tested for impairment at 1 January 2003, the transition date.    
Also, from the year ended 31 December 2003 onwards, goodwill is tested annually 
for impairment, as well as when there are indications of impairment. The Group  
has also reassessed the useful lives of its intangible assets in accordance with
the provisions of IAS 38. No adjustment resulted from this reassessment.        
All changes in the accounting policies have been made in accordance with the    
transition provisions in the respective standards.                              
The early adoption of IAS 1, 2, 8, 17 28, and 32 (all revised 2003) did not     
result in substantial changes to the Group`s accounting policies.               
In summary:                                                                     
- IAS 1, 2, 28 and 32 had no material effect on the Group`s policies.           
- IAS 8 (revised 2004) has resulted in the disclosure of the impact of new      
standards                                                                       
2.2 Consolidation                                                               
(a) Subsidiaries                                                                
Subsidiaries include all entities (including special purpose entities) over     
which the Group has the power to govern the financial and operating policies    
generally accompanying a shareholding of more than one half of the voting       
rights. The existence and effect of potential voting rights that are currently  
exercisable or convertible are considered when assessing whether the Group      
controls another entity. Subsidiaries are fully consolidated from the date on   
which control is transferred to the Group. They are deconsolidated from the date
that control ceases.                                                            
The purchase method of accounting is used to account for the acquisition of     
subsidiaries by the Group. The cost of the acquisition is measured as the fair  
value of the assets given, equity instruments issued and liabilities incurred or
assumed and the date of plus costs directly attributable to the acquisition.    
Identifiable assets acquired and liabilities and contingent liabilities assumed 
in a business combination are measured initially at their fair values at the    
acquisition date irrespective of the extent of any minority interest. The excess
of the cost of acquisition over the fair value of the Group`s share of the      
identifiable net assets acquired is recorded as goodwill. If the cost of        
acquisition is less than the fair value of the net assets of the subsidiary     
acquired, the difference is recognised directly in the income statement. All    
balances and unrealised surpluses and deficits on transactions between group    
companies have been eliminated. Where necessary, accounting policies for        
subsidiaries have been changed to be consistent with the policies adopted by the
Company. Separate disclosure (in equity) is made of Minority Interests.         
(b) Associates                                                                  
Associates are all entities over which the Group has significant influence but  
not control, generally accompanying a shareholding of between 20% and 50% of the
voting rights. Investments in associates are accounted for by the equity method 
of accounting and are initially recognised at cost. The Group`s investment in   
associates includes goodwill (net of any accumulated impairment loss) identified
on acquisition. The Group`s share of its associates` post-acquisition profits or
losses is recognised in the income statement, and its share of post acquisition 
movements in reserves is recognised in reserves. The cumulative post-acquisition
movements are adjusted against the carrying amount of the investment.           
When the Group`s share of losses in an associate equals or exceeds its interest 
in the associate, including any other unsecured receivables, the Group does not 
recognise further losses, unless it has incurred obligations or made payments on
behalf of the associate. Unrealised gains on transactions between the Group and 
its associates are eliminated to the extent of the Group`s interest in the      
associates. Unrealised losses are also eliminated unless the transaction        
provides evidence of an impairment of the asset transferred. The accounting     
policies of the associates are consistent with the policies adopted by the      
Group.                                                                          
Goodwill included in the carrying amount of an investment is neither amortised  
nor tested for impairment separately by applying the requirements for impairment
testing goodwill in IAS 36, Impairment of Assets. Instead, the entire carrying  
amount of the investment is tested under IAS 36 for impairment.                 
All subsidiaries and associates have uniform calendar year ends.                
2.3 Segment reporting                                                           
A business segment is a group of assets and operations engaged in providing     
products or services that are subject to risks and returns that are different   
from those of other business segments. A geographical segment is engaged in     
providing products or services within a particular economic environment that are
subject to risks and return that are different from those of segments operating 
in other economic environments.                                                 
2.4 Foreign currency translation                                                
(a) Functional and presentation currency                                        
Items included in the financial statements of each of the Group`s entities are  
measured using the currency of the primary economic environment in which the    
entity operates (`the functional currency`). The functional currency of the     
Group is the Naira. The consolidated financial statements are presented in US   
dollars, which is the Company`s presentation currency for the purpose of filing 
outside Nigeria.                                                                
(b) Transactions and balances                                                   
Foreign currency transactions are translated into the functional currency using 
the exchange rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities       
denominated in foreign currencies are recognised in the income statement, except
when deferred in equity as qualifying cash flow hedges and qualifying net       
investment hedges.                                                              
c) Group Companies                                                              
The results and financial position of all the group entities (none of which has 
the currency of a hyperinflationary economy) that have a functional currency    
different from the presentation currency are translated into the presentation   
currency as follows:                                                            
1  Assets and liabilities for each balance sheet presented are translated at    
  the closing rate at the date of that balance sheet.                           
2  Income and expenses for each income statement are translated at average      
  exchange rates; and all resulting exchange differences are recognised as      
a separate component of equity.                                               
3  On consolidation, exchange differences arising from the translation of       
  the net investment in foreign entities are taken to shareholders` equity.     
  Upon disposal of part or all of the investment, such exchange differences     
are recognised in the income statement as part of the gain or loss on         
  sale.                                                                         
3. Earnings per share                                                           
Basic earnings per share (EPS) is calculated by dividing the profit attributable
to the equity holders of the Company by the weighted average number of shares in
issue during the period.                                                        
                                                       2007     2006            
Profit attributable to equity holders of the Company    43,944   19,267         
($`000)                                                                         
Weighted average number of shares in issue              633,198  572,301        
(thousands)                                                                     
Basic earnings per share (cents)                        6.94     3.37           

Diluted                                                                         
Profit attributable to equity holders of the Company    43,944   19,267         
Weighted average number of shares in issue              633,198  572,301        
(thousands)                                                                     
Adjustment for bonus issues                                      -              
Weighted average number of shares for diluted           633,198  572,301        
earnings per share (thousands)                                                  
Diluted earning per shares (cents)                      6.94     3.37           
                                                                                
Headline earnings per share                                                     
Profit attributable to equity holders of the Company    43,944   19,267         
Adjusted for:                                           -        -              
Profit on sale of buildings associated with                                     
discontinued operations                                                         
Profit/(Loss) on sale of other assets                   (5,136)  (4,904)        
Loss on sales of investment in affiliated companies     -                       
Tax thereon                                             -        172            
                                                       38,808   14,534          
Headline earnings per share attributable to earnings    6.12     2.54           
basis (cents)                                                                   
Headline earnings per share attributable to diluted     6.12     2.54           
earnings basis (cents)                                                          
Net assets per share (cents)                            59.43    32.16          
Tangible assets per share (cents)                       60.35    27.31          
4. Independent audit by the Auditors                                            
These condensed consolidated results have been audited by our auditors          
PricewaterhouseCoopers who perform their audit in accordance with the           
International Standards on Auditing. PricewaterhouseCoopers`unqualified opinion 
is available for inspection at the Company`s registered office.                 
5. Post balance sheet events                                                    
There are no significant post balance sheet events that in the opinion of the   
Director will have material impact on the account herein presented              
For and on behalf of the Board                                                  
Mr J Adewale Tinubu                                                             
Group Chief Executive Officer                                                   
11 April 2008                                                                   
Directorate:                                                                    
1   General M. Magoro (Rtd.) OFR   - Chairman                                   
2   Mr. J. A. Tinubu               - Group CEO                                  
3   Mr. O. Boyo                    - Deputy Group CEO                           
4   Mr. B. Osunsanya               - Group Executive Director                   
5   Mr Onajite Okoloko             - Non- Executive Director                    
6   Mr. A. Akinrele SAN            - Non-Executive Director                     
7   Prince F. N. Atako JP          - Non-Executive Director                     
8   Mr. O. Ibru                    - Non-Executive Director                     
9   Alhaji H. Mahmud Walin Mubi    - Non-Executive Director                     
10  Mr. I. Osakwe                  - Non-Executive Director                     
11  HRM. Oba. A. Gbadebo OFR       - Non-Executive Director                     
Company Secretary: Mrs. Oredeji Delano                                          
Registered office: 2, Ajose Adeogun Street, Victoria Island, Lagos, Nigeria     
Auditors: PriceWaterhouseCoopers, Plot 252E Muri Okunola Street, Victoria       
Island, Lagos                                                                   
E-mail: info@oandoplc.com                                                       
Registered office in South Africa: 1st Floor, 32 Fricker Road, Illovo Boulevard,
Sandton, 2196, South Africa                                                     
Office of the South African registrars: Computershare Investor Services         
(Proprietary) Limited (Registration number: 2004/003647/07)                     
70 Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown, 2107        
Sandton                                                                         
14 April 2008                                                                   
Sponsor: Deutsche Securities (SA) (Proprietary) Limited                         
Date: 14/04/2008 11:00:01 Supplied by www.sharenet.co.za                     
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